Uber, Lyft drivers and customers should be aware of potential insurance issues

Ohio Lieutenant Governor and state insurance director Mary Taylor urges those interested in becoming a driver with companies like Uber and Lyft to consider buying commercial automobile insurance that includes coverage for bodily injury or property damage and for damage caused by an uninsured or underinsured motorist while driving passengers for payment.

(This story was updated at 3:54 p.m. on April 16)Drivers and riders interested in using the popular and controversial ride-hailing apps Uber and Lyft that launched in Cleveland last week should be aware of the potential insurance issues that could arise, according to a consumer alert issued Wednesday morning by Ohio Lt. Gov. Mary Taylor, who is the state insurance director.“Ohioans considering these types of services should weigh all factors including any coverage gaps that may exist,” Taylor said in a statement. “While the driver may have insurance, his or her policy may or may not provide all the coverage needed should an accident occur.”According to the Ohio Department of Insurance, personal automobile insurance isn't intended to cover people using their vehicles for commercial purposes. The tech companies may provide liability insurance, but not other protections such as medical payments coverage, according to the state agency.Taylor urges those interested in becoming a driver with companies like Uber and Lyft to review their personal coverage and to consider buying commercial automobile insurance that includes coverage for bodily injury or property damage and for damage caused by an uninsured or underinsured motorist while driving passengers for payment.In response to Taylor’s statement, James Ondrey, the general manager of Uber’s Ohio operations, said in an e-mail the “safety of Uber users and drivers is fundamental to our principals.” On top of a driver’s personal insurance policy, Ondrey said Uber has commercial liability coverage up to $1 million per incident, which includes uninsured and underinsured motorists coverage.“Uber became the first ridesharing service to add contingent coverage to eliminate any ambiguity about a driver's personal auto policy's coverage,” Ondrey said. “Uber is proud to be the standard-bearer on ridesharing insurance issues and look forward to a continued discussion on the facts in Ohio."Taylor isn't the first to raise concerns over the popular apps. Last Wednesday, April 9 — the day Uber went live in Cleveland — the city of Columbus sued the company, claiming the service is an unlicensed operation that's putting people at risk because the city hasn't inspected Uber cars or licensed Uber drivers. Uber, which operates in more than 85 cities worldwide, launched in Columbus late last year.However, because of the way the tech companies are structured, they appear to fall outside Cleveland's regulatory authority over taxi-cab services. Instead, the city — at least at the moment — considers them limousine services, which are regulated by the state.